Most lenders accept residential, commercial, and industrial properties, whether self-occupied or rented out. The property must have a clear title and meet the lender’s legal and technical criteria. Agricultural land is generally not accepted.
The loan amount typically ranges from 50% to 70% of the property's current market value, depending on the lender’s policy, your income, credit profile, and property type. A proper valuation of the property is usually conducted by the lender before approval.
Key documents include proof of identity, address, income (salary slips, bank statements, ITRs), property ownership documents, and employment or business proof. The exact list may vary depending on whether you're salaried or self-employed and the lender’s requirements.
Basically, the bank looks at your repayment capacity. For calculating the loan amount, your income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration. However the eligibility of loan does not, generally, exceed 60 percent of the market value of the property.
Loans against property has a maximum tenure of 15 years, subject to the condition it does not exceed your retirement age. This condition however can be flexible in certain cases.
Yes. Prepayment is possible and there is no prepayment fee if you repay the loan after six months of availing the loan if you pay from your own source of funds without transferring the loan.
